RigNet, Inc. (NASDAQ:RNET) Files An 8-K Other Events
Item 8.01. Other Events.
Arbitration Update
On June 24, 2019, RigNet, Inc. (the Company) announced that it has reached a settlement with Inmarsat Global Limited (Inmarsat) that concludes the GX Arbitration pending before the International Centre for Dispute Resolution. to the settlement, RigNet will pay Inmarsat $45 million immediately, $5 million in the third quarter of 2019, and $750,000 in the third quarter of 2020.
As previously disclosed by the Company, in October 2016, Inmarsat initiated arbitration proceedings with the International Centre for Dispute Resolution concerning the Companys January 2014 take or pay agreement with Inmarsat to purchase up to $65.0 million, under certain conditions, of GX capacity over several years. On November 29, 2018, the arbitration panel issued a ruling finding that the Companys minimum revenue commitment had commenced and calculated the Company owed Inmarsat $50.8 million, subject to any offsets from the Companys counterclaims in Phase II of the arbitration and subject to any increases for additional claims of Inmarsat, interest and attorneys fees that could be awarded in Phase II of the Arbitration.
The full text of the press release announcing the settlement of the GX arbitration is furnished as Exhibit 99.1 to this Current Report on Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
| 99.1 | Press release of RigNet, Inc. dated June 24, 2019 |